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(QNO) - THACO (Truong Hai Auto Corporation) is now pioneering the development of supporting industry.
Modern spare parts factories
Based on the situation of Vietnamese automobile industry and the company's production and business, THACO has developed a strategy for localization and participation in the global value chain when it started to merge in the Chu Lai Open Economic Zone (OEZ) in 2003.
In addition to building new automobile manufacturing and assembly plants and upgrading existing plants to increase the automation and digitalization for mass production to meet customers' specific requirements, THACO has set up the Viet Nam's largest auto accessory manufacturing industrial park at the Chu Lai OEZ in Quang Nam province. It covers an area of nearly 100 hectares.
This auto accessory manufacturing industrial park includes 12 factories producing automobile spare parts and accessories and a mechanical engineering complex. The products made in this park include interior and exterior items for buses, trucks and passenger cars; composite components; leaf springs; glass; air-conditioners; bumpers; automobile frames; seats and seat covers; wire harnesses; chassis and others. They are not only provided for THACO's automobile assembly factories and other interior companies but also exported to Southeast Asian and other overseas markets.
These factories are equipped with modern technology acquired from Japan and South Korea and intelligent management systems from ordering to manufacturing and distribution.
The plastic components plant uses a 3,200-tonne-injection moulding system, the most advanced plastic coating technology in Vietnam with paint robots and an automatic paint feeding system. In the automobile seat plant where car seats are produced for many different models and brands, all the equipment is modern and automatic, imported from Europe and South Korea.
Besides, THACO has built an R&D center to master its own technologies and designs. Moreover, THACO has set up joint ventures and collaborated with partners to receive technical support for manufacturing spare parts and accessories for trucks, buses and passenger cars from South Korea and Japan.
Increasing the localization and exports
Owning automobile spare parts and accessories factories, THACO’s auto models have achieved a localization rate of over 40 percent, meeting the regional value content (RVC) criterion and enjoying the zero-tax rate when they are exported to ASEAN countries. At the same time, automobile accessories are also exported, which helps THACO gradually join the global value chain.
THACO’s major markets are South Korea, Japan, Russia, the Philippines, Kazakhstan, Malaysia, Singapore, Turkey, Bangladesh, Thailand, Indonesia, Australia, and Germany. The company plans to expand its export markets to Europe and America in the coming time.
THACO is planning to build more new supporting-industrial plants to increase automation and factories that manufacture Mazda parts and accessories for export in Chu Lai. It also ties up with Kia Motors’ suppliers to produce high-tech parts, joining the OEM accessory supply chain in Viet Nam.
In addition, THACO develops a strategy for non-auto products with good quality and competitive prices to meet customers’ needs.